Bradford Council's outside auditors KPMG say the authority should get tough over its unpaid rent, Council Tax and business rates.

In their audit of the 1996/97 accounts they recommend the Council be "more demanding" in its action over the debts. The report says the authority has improved in many aspects of its performance since the previous audit, however.

But KPMG says it has been unable to complete the audit because of an outside challenge to part of the accounts. Until the complaint is finalised it is unable to close the books.

KPMG says the Council has tried to manage its expenditure within resources, but it points out some directorates are having financial problems - including the education committee which has gone in the red for central services within three consecutive years. The housing revenue account is also overspent by more than £1m.

KPMG says members should get regular formal reports to enable them to monitor the progress of an action plan implemented in the Housing Directorate to rectify it. They point out that the numbers of empty Council properties has continued to rise from three per cent of the overall 28,000 properties in 1995 to an anticipated six per cent this year.

The auditors say members should also ensure that officers complete a plan to bring its computer systems up to the level needed in the year 2000.

KPMG says financial systems continue to be well controlled, but there are some weaknesses in respect of "regularity and probity." They recommend action including witnesses for cash payments and limits set on pre-signed cheques. The auditors express continued concern about the level of the Council's balances - totalling £4.3m at the end of last year.

Today, Council leader Councillor John Ryan said the balances show the Council did not want to hold back more money than was necessary for a rainy day. He said: "I am pleased but not surprised that KMPG have endorsed the way we are running the Council."

On the empty properties, Coun Ryan said the figure was due to demolition of large numbers of unsuitable homes and modernising existing Council houses.

But the Council's minority Tory and Liberal Dems criticised the report and said it was not good enough.

Leader of the Council's Tory group Councillor Margaret Eaton said she was unhappy over concerns about the housing department.

And leader of the Council's Liberal Dem group, Councillor Jeanette Sunderland said she feared the district could face huge disruption as it had been revealed the Council did not have a detailed plan to beat the "year 2000 computer bug" in all its systems.

Coun Ryan said action was being taken and a report had gone to the policy and resources committee.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.